As the January 17, 2025, deadline for the Digital Operational Resilience Act (DORA) draws near, financial institutions across the EU are under pressure to enhance their cybersecurity and operational resilience.

Designed to harmonise security standards across the financial sector, DORA’s requirements address vulnerabilities within internal systems and third-party ecosystems.

While non-compliance risks include regulatory fines, reputational damage, and heightened vulnerability to cyberattacks, the journey toward compliance offers opportunities to innovate and strengthen business operations.

Third-Party Risks: A Critical Component of DORA

DORA places a strong emphasis on third-party risk management, acknowledging that vulnerabilities in external ICT service providers – such as cloud vendors and data centres – can pose significant threats.

Historically, third-party providers have operated with limited accountability, often transferring the consequences of breaches back to financial institutions.

Recent high-profile incidents, including the 2024 Santander hack and the Finastra breach, highlight the systemic risks posed by third-party failures.

Single points of failure in interconnected ecosystems can lead to widespread disruptions, costly reparations, and reputational damage.

To mitigate these risks, DORA mandates comprehensive risk assessments, policies and contingency planning, extending these requirements to third-party service providers.

The regulation also introduces standards that will affect entities outside the EU that provide services to EU-based organisations.

Financial institutions can adopt a zero-trust framework, treating every device and identity as a potential threat.

Deploying privacy-enhancing technologies (PETs) like encryption and tokenization can further bolster security by anonymising sensitive data at rest, in transit and during use.

These measures ensure that even in the event of a breach, critical data remains secure.

Six Key Steps to Achieving DORA Compliance

Preparing for DORA involves significant changes to IT infrastructure, but a structured approach can simplify the process. The following six steps can help financial institutions streamline their compliance efforts:

1. Conduct a Gap Analysis
   Begin by assessing whether current systems, processes, and risk management measures align with DORA’s requirements. Data protection tools can help identify vulnerabilities and prioritise areas for improvement.
2. Develop an Action Plan
   Create a detailed roadmap that outlines specific steps for achieving compliance, assigns responsibilities, and sets realistic deadlines. This plan should cover enhancements to data security and operational resilience.
3. Strategically Allocate Resources
   Allocate budgets for upgrading technology, hiring external experts, and training teams responsible for implementing DORA-compliant measures. Investing in the right resources early can prevent costly delays and inefficiencies.
4. Engage All Stakeholders
   Compliance requires collaboration across the organization. Senior management, risk teams, and third-party vendors must understand their roles and responsibilities to ensure a cohesive approach.
5. Test, Validate, and Report
   Regular testing—such as penetration tests and simulated cyberattacks—can identify weaknesses before they lead to real-world issues. Reporting on these activities demonstrates compliance and enhances operational resilience.
6. Maintain Ongoing Monitoring
   Continuous monitoring is essential to adapt to evolving threats and regulatory updates. Automating parts of this process can improve efficiency and provide timely insights into system vulnerabilities.

By following these steps, organisations can enhance their cybersecurity posture, build operational resilience and foster trust with clients by demonstrating a commitment to safeguarding their assets.

Unlocking Opportunities Through DORA

DORA compliance is not merely a regulatory requirement – it is an opportunity to innovate and gain a competitive edge.

Businesses that prioritise digital resilience are more likely to be agile, profitable, and future-ready according to the World Economic Forum.

One global bank, serving over 200 million customers across 160 countries, exemplifies the transformative potential of compliance.

By implementing a data security platform with PETs, the bank met global privacy regulations while enhancing operational efficiency.

This approach unlocked new use cases, including advanced fraud analytics and personalised marketing, without duplicating infrastructure or outsourcing to costly local processors.

For EU financial institutions, DORA offers similar possibilities to explore innovative processes, build new partnerships and derive actionable insights from data.

Approaching the DORA Deadline with Confidence

With the January 2025 deadline fast approaching, financial institutions must prioritise DORA compliance to safeguard their operations and capitalise on new opportunities.

By adopting a structured, strategic approach, organisations can turn compliance challenges into business advantages, ensuring they are well-prepared for the future.

DORA compliance not only fortifies resilience but also positions institutions to thrive in an increasingly digital and interconnected financial ecosystem.

By embracing this opportunity, financial institutions can confidently approach the deadline and emerge stronger, more secure and more innovative.

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